One of the options of building a home for yourself is buying a plot or a piece of land and then getting it constructed. The process of buying a plot in India involves the same extent of planning and research as the purchase of an apartment. While affordability and location remain the main factors for finalising a purchase, it is essential to check the legality of the property being sold. The failure to do so can result in you losing your hard-earned money in fraudulent deals.
Documents to Check
The process of buying a plot requires you to check and verify various documents that provide proof of the existence of a plot and its specifications. Other documents proving that the plot is legally owned by the seller also need to be checked before you finalise a deal. Let us look at some essential documents for finalising a plot deal. The absence of even a single document can lead to the rejection of your plot loan in India.
- Title Deed – This document is proof that the seller is the owner of the concerned plot or piece of land. The title deed of a property mentions the owner’s name and acts as proof of his authority to sell the plot. You can even crosscheck the authenticity of the title deed with the local authorities.
- Mother Deed – This document traces the concerned property’s previous owners and is the original ownership proof. This document is needed when a property has been sold off or gifted or inherited or partitioned. These documents are essential to know the ownership details in sequence, up to the date of the current owner.
- Conversion Certificate or the NA Order – An important fact unknown to most buyers is that all land in India is agricultural land unless defined for some other purpose by the government. So, if you are planning to buy a piece of land for purposes other than agriculture, it has to have a NA certificate. The certificate specifies the nature of activities that can be carried out on the concerned land and includes options like commercial, warehouse, resort, IT, and residential. The conversion certificate is issued by the competent revenue authority.
- Khata Certificate – Khata which means the account is an important document for the registration of a new plot or transfer of the ownership of the plot to another person. This document is proof that the plot has an entry in the local municipal records and is highly essential for a plot loan.
- Power of Attorney – This is needed when the original owner appoints another person to act on his behalf. The certificate shows the owner has legally authorised another person in whose name the power of attorney is, to carry out the transaction on his behalf.
- Tax Payment Receipts – Receipts of property and other taxes paid by the owner of a plot are very important and their absence may create problems in the future. This is important because once you buy a property you become responsible for the payment of all the pending dues.
- Encumbrance Certificate – This document is proof that the concerned plot is free from any kind of outstanding loans or mortgages.
You should always check with the lenders about the documents that are required to be submitted for applying for loans for a plot. This will save a lot of time and effort besides ensuring quick processing of your plot loan application.
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